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Jordans

THE GOVERNMENT HAS “ABOLISHED” THE CHAIRMAN’S CASTING VOTE!

“Companies must change their articles to restore this crucial stalemate-breaker”

From now on, a company‘s chairman no longer has a casting vote, thanks to the new Companies Act.

This could lead to stalemate in company boardrooms when votes are split evenly – unless they re-write their articles of association to restore their chairman‘s casting vote.

This is the verdict of Jordans, the UK‘s biggest independent providers of business services and information to companies and their professional advisers.

According to Janis Law, Jordans‘ Group Chief Solicitor: “We have taken counsel‘s advice on this change, which came into force in October as a result of the Companies Act. 

“The answer seems to be that the chairman‘s casting vote, contained in many company‘s articles of association, is now ‘dead‘, and can only be restored by re-writing the articles.

“This will be a huge impediment for most small companies – and many larger ones – which have long been used to relying on the chairman‘s casting vote to break any boardroom deadlock. Without that casting vote solution, they face the prospect of stalemate on any equally contested issue – leading to paralysis”, said Ms Law.

“The Government has identified this error, but we do not know when or if it will be remedied. Based on counsel‘s advice, therefore, Jordans has created an articles updating service to restore the chairman‘s casting vote.

“We strongly recommend that companies who are used to relying on this provision in their articles update their articles without delay”, she added. 

ENDS             14th December 2007

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

Note to editors

  • Jordans Limited has been providing professional business services for over 140 years. These services now include company formations and administration in the UK and internationally, business information and conveyancing support. 
  • Jordans have been offering company formations for all of its 140 years.  As well as forming all types of companies, they provide software – Incorporator - for clients who undertake volume formations and PCSec, a software package which helps company secretaries administer their companies.
  • Jordans have been providing international corporate services for many years. With offices in Bristol, London and five offshore locations (Jersey, Gibraltar, Cyprus, British Virgin Islands and Seychelles) Jordans Ltd is able to provide full UK and international support for their clients.  International services include setting up UK or offshore companies and trusts, company management and professional trusteeship.
  • Jordans‘ business information services include company searches, data sales (either large or small batches of data on companies and directors) and three branded products – JordanWatch, a database of information and reports on companies, NameGuard, a company name-watching service, and KYC (Know Your Client) Reports used for anti-money laundering information. 
  • Jordans Limited has been in the property search business for 30 years and has been offering online search ordering for several years.  Their service spans more than 70 different searches, ranging from all the standard searches, including local authority, drainage and environmental, to the many special requirements for individual properties and localities, such as searches for mining, transport and chancel repair.
  • Jordans has over 100 years of conveyancing experience and is one of only three National Land Information Search channels providing local authority searches electronically. The company offers a comprehensive HIPs package, delivering all elements of the pack efficiently and within the quickest possible time.
  • Jordans are committed to providing a first-class service and enjoy a reputation for quality, reliability and professionalism.